Kate Spade & Co

CIK:0000352363|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net Sales	$ 271,225	$ 274,422
Cost of goods sold	99,763	104,941
Gross Profit	171,462	169,481
Selling, general & administrative expenses	164,580	151,768
Operating Income	6,882	17,713
Other income (expense), net	607	(247)
Interest expense, net	(4,545)	(4,996)
Income Before Provision for Income Taxes	2,944	12,470
Provision for income taxes	1,750	1,554
Income from Continuing Operations	1,194	10,916
Discontinued operations, net of income taxes	165	720
Net Income	$ 1,359	$ 11,636
Earnings per Share, Basic:
Income from Continuing Operations (in dollars per share)	$ 0.01	$ 0.09
Net Income (in dollars per share)	0.01	0.09
Earnings per Share, Diluted:
Income from Continuing Operations (in dollars per share)	0.01	0.08
Net Income (in dollars per share)	$ 0.01	$ 0.09
Weighted Average Shares, Basic (in shares)	128,387	127,931
Weighted Average Shares, Diluted (in shares)	128,954	128,636

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Cash Flows from Operating Activities:
Net Income	$ 1,359	$ 11,636
Adjustments to arrive at income from continuing operations	(165)	(720)
Income from continuing operations	1,194	10,916
Adjustments to reconcile income from continuing operations to net cash used in operating activities:
Depreciation and amortization	12,459	11,539
Loss on asset disposals and impairments, including streamlining initiatives, net	6,767	206
Share-based compensation	6,199	7,910
Foreign currency transaction gains, net	(3,924)	(4,325)
Equity losses of equity investees	260	1,241
Other, net	5	31
Changes in assets and liabilities:
Decrease in accounts receivable – trade, net	13,752	29,279
Increase in inventories, net	(46,261)	(26,306)
Increase in other current and non-current assets	(9,727)	(448)
Increase (decrease) in accounts payable	800	(9,589)
Decrease in accrued expenses and other non-current liabilities	(21,517)	(33,368)
Net change in income tax assets and liabilities	(226)	462
Net cash used in operating activities of discontinued operations	(71)	(119)
Net cash used in operating activities	(40,290)	(12,571)
Cash Flows from Investing Activities:
Purchases of property and equipment	(9,903)	(11,822)
Proceeds from sales of joint venture interests, net		(2,350)
Investments in and advances to equity investees		(6,500)
Payments for in-store merchandise shops	(1,664)	(660)
Purchase of trademarks		(1,200)
Other, net	(11)	45
Net cash used in investing activities	(11,578)	(22,487)
Cash Flows from Financing Activities:
Repayment of Term Loan	(1,000)	(2,000)
Principal payments under capital lease obligations	(138)	(123)
Proceeds from exercise of stock options	810	65
Payment of deferred financing fees	(171)	(315)
Withholding taxes on share-based compensation	(5,344)	(761)
Net cash used in financing activities	(5,843)	(3,134)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	1,507	988
Net Change in Cash and Cash Equivalents	(56,204)	(37,204)
Cash and Cash Equivalents at Beginning of Period	478,536	297,851
Cash and Cash Equivalents at End of Period	$ 422,332	$ 260,647

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016	Apr. 02, 2016
Current Assets:
Cash and cash equivalents	$ 422,332	$ 478,536	$ 260,647
Accounts receivable - trade, net	64,336	77,487	68,626
Inventories, net	215,097	167,461	220,666
Deferred income taxes			1,985
Other current assets	36,871	34,024	31,808
Total current assets	738,636	757,508	583,732
Property and Equipment, Net	159,395	167,192	175,290
Goodwill	52,173	50,045	52,315
Intangibles, Net	85,881	86,703	87,285
Deferred Income Taxes	1,764	2,322	743
Other Assets	54,256	46,549	52,536
Total Assets	1,092,105	1,110,319	951,901
Current Liabilities:
Short-term borrowings	3,701	3,664	3,638
Accounts payable	93,390	93,144	99,817
Accrued expenses	103,113	125,434	117,832
Income taxes payable	1,701	2,207	917
Total current liabilities	201,905	224,449	222,204
Long-Term Debt	388,878	389,742	391,317
Other Non-Current Liabilities	46,957	48,685	51,995
Deferred Income Taxes	18,048	17,512	18,844
Commitments and Contingencies (Note 6)
Stockholders' Equity:
Preferred stock, $0.01 par value, authorized shares - 50,000,000, issued shares - none
Common stock, $1.00 par value, authorized shares - 250,000,000, issued shares - 176,437,234	176,437	176,437	176,437
Capital in excess of par value	258,015	251,816	232,587
Retained earnings	1,295,318	1,306,096	1,165,559
Accumulated other comprehensive loss	(25,396)	(28,160)	(27,011)
Total stockholders' equity, excluding treasury stock	1,704,374	1,706,189	1,547,572
Common stock in treasury, at cost — 47,832,563, 48,261,217 and 48,457,848 shares	(1,268,057)	(1,276,258)	(1,280,031)
Total stockholders’ equity	436,317	429,931	267,541
Total Liabilities and Stockholders’ Equity	$ 1,092,105	$ 1,110,319	$ 951,901